Which factor decreases buyer bargaining power?

The factor that decreases buyer bargaining power is low purchase volume. When buyers purchase in small quantities, they typically have less influence over suppliers. This is because suppliers are often more interested in larger orders, which can justify lower prices through economies of scale. A buyer with a low purchase volume poses less of a threat to a supplier's sales and may be treated as a less important customer, limiting their ability to negotiate favorable terms or prices.

On the other hand, the ability to negotiate prices generally increases buyer bargaining power, as it allows buyers to assert their preferences and demands more effectively. The presence of alternative suppliers strengthens buyer power, as buyers can switch suppliers and leverage competition to obtain better prices or terms. Lastly, high competition within a market usually benefits buyers, as it increases the number of options available to them, thereby enhancing their bargaining position.